Garuda Indonesia to seek suspension of debt payments to avoid bankruptcy.
National flag carrier Garuda Indonesia will seek a suspension of debt payments to creditors and lessors under a ‘standstill agreement’ in order to avoid bankruptcy, a senior government official said on Thursday, Reuters reported.
The coronavirus pandemic has put the state-controlled airline’s finances under serious strain with a negative cashflow of about $100 million a month and ballooning debt, Kartika Wirjoatmodjo, Indonesia’s deputy minister of state-owned enterprises (SOEs), told a parliamentary hearing.
The carrier needed a “fundamental restructuring” to reduce its debt to around $1 billion to $1.5 billion, from $4.5 billion currently, to continue as a going concern, he said.
“We are appointing legal and financial consultants to begin this process and we must immediately conduct a moratorium (of debt repayments) or a standstill in the near term,” Kartika said.
Related Topics
British Airways Introduces New VIP Lounge Concept with Openings in Miami and Dubai
SWISS’s First Airbus A350 Lands in Zurich, Marking a New Era for Airline
Lufthansa Debuts New Allegris Cabin on Flights from Frankfurt to Toronto, Rio de Janeiro, Bogotá, Hyderabad, and Austin
United Airlines Strengthens Transatlantic Leadership with Flights to New Cities in Croatia, Italy, Scotland, and Spain for Summer 2026
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.